Kathmandu: Super Khudi Hydropower has opened its initial public offering (IPO) to the general public starting Tuesday, February 18, following the completion of share allocations to project-affected locals and Nepali migrant workers.
The company had earlier secured approval from the Nepal Securities Board to issue 3.1 million ordinary shares worth Rs 310 million, representing 20 percent of its issued capital of Rs 1.55 billion.
In the first phase, shares were distributed to residents of Marsyangdi Rural Municipality in Lamjung district, the area affected by the project. Of the total allocation, 620,000 shares were issued to residents of Wards 2 and 3, while 930,000 shares were allotted to residents of Wards 1 and 4 through 9.
An additional 155,000 shares, 10 percent of the remaining local quota, were allocated to Nepali citizens working abroad. The company has also set aside 77,500 shares for mutual funds and 31,000 shares for employees. The remaining 1,286,500 shares are now available to the general public, with a minimum allocation of 10 shares per applicant, meaning up to 128,650 investors are expected to receive shares. The issue is being managed by Global IME Capital.
Despite moving ahead with the IPO, the company has yet to begin commercial electricity generation. In Nepal, there has been growing debate over whether hydropower developers should be allowed to float IPOs before starting commercial operations. A government-formed Economic Reform Advisory Commission led by former finance minister Rameshwar Khanal had also raised this issue in its report.
The company is developing the 26-megawatt Upper Khudi Hydropower Project in Marsyangdi Rural Municipality, Lamjung. Construction is 95.3 percent complete. Super Khudi received its power generation license from the Department of Electricity Development in May 2018, valid until May 2043 (BS 2110). The total estimated project cost stands at approximately Rs 5.38 billion, including interest during construction, with a per-megawatt cost of Rs 206.9 million.
All electricity generated by the project will be sold to the Nepal Electricity Authority under a power purchase agreement (PPA) signed in April 2019. However, due to construction delays, the commercial operation date has been revised three times—first in 2023, then in 2024, and most recently in November 2024. According to the latest amendment, commercial production is now scheduled to begin on February 19, 2026. Under the agreement, the company will operate the project for 30 years before transferring ownership to the Government of Nepal.
As of mid-October last year, the company reported a net worth per share of Rs 137.53 and earnings per share of Rs 4.45. Although it has not started commercial production, it posted a profit of Rs 194.6 million, largely due to construction revenue and expenses recognized under IFRS-12 accounting standards. The company has accumulated retained earnings of Rs 465.3 million and projects significant profit growth once operations commence. It forecasts revenue of Rs 406 million and net profit of Rs 398.8 million in the current fiscal year from electricity sales. For fiscal year 2027/28, it projects revenue of Rs 854.6 million with a net profit of Rs 156 million, and for 2028/29, revenue of Rs 879.9 million with a net profit of Rs 197.16 million.
For the IPO, credit rating agency CARE Ratings Nepal assigned the company a ‘CARE-NP Double B’ issuer rating, indicating moderate risk in its ability to meet financial obligations.
The company’s largest individual investor is Gyanendra Lal Pradhan, who holds shares worth Rs 265.24 million, representing 21.39 percent of total ownership. He has served as Executive Chairman of Hydrosolutions Pvt. Ltd. since 2007. Other major shareholders include Ganesh Karki, Bimala Shrestha Pradhan, Batu Lamichhane, Kabita Lamichhane, N. Maharjan, Yugjang Karki, Barnan Lamichhane, Jigyasa Lamichhane, Bibena Lamichhane, Shankar Prasad Sharma, and Kalpana Aryal. Institutional investors are also involved, with Nepal Hydro Developers investing Rs 100 million, Vaidik Hydro Investment Company Rs 88.43 million, Super Khudi Investment Rs 73.48 million, BG Group Pvt. Ltd. Rs 26.2 million, and Yug Holdings Pvt. Ltd. Rs 24.95 million. Nepal Hydro Developers is also associated with Pradhan.
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